03 July 2006 Reliefs package will help most in need with their rates bill - Hanson
People on low incomes and those most adversely affected by the move to the new capital value system of domestic rating, will benefit from a special range of reliefs, Finance Minister, David Hanson MP, revealed today.
Mr Hanson set out the detail of a new package of measures to be introduced from April 2007 to coincide with the introduction of the new rating system. He was making the announcement during a visit to the Valuation & Lands Agency, the local body responsible for conducting the re-valuation of all homes in Northern Ireland.
The Minister said:
“These measures will benefit many ratepayers in Northern Ireland and smooth the transition to the new system.
“The rate relief scheme, which is unique to Northern Ireland and takes account of local circumstances, will provide assistance to those most in need.
“While 25% of households currently receive assistance with paying their rates bill, we want to ensure that the scope of assistance is extended to those just outside the housing benefit thresholds. We want to reduce the impact of rates on low income households and this new relief will achieve that.
“In the region of 40,000 households could receive assistance under the new scheme, and on average £270 awarded. This will make a significant difference to the poorest households in our society.”
Mr Hanson also announced the detail of the transitional relief that will be provided under the new system:
“While the move to a new charge, based on individual capital values, will make the system fairer, it will also result in significant changes in rates liability, both up and down. For this reason transitional relief will be awarded to those most adversely affected by the revaluation.
“Transitional relief will be made available where rates bills increase by more than 33% over what they would otherwise have been under the current rental based system. Through this, assistance can be directed towards those most adversely affected by the changes. Those entitled to transitional relief will not have to pay their full rates bill until 2010/11, providing three years in which to adjust to the changes.”
Along with the detail of the key relief measures he also highlighted the Government’s policy position on a number of other key measures, including the minimum/maximum payment, standardisation in the social rented sector, landlord liability to pay rates and the intention to provide district councils with the discretion to introduce the rating of vacant domestic property following the introduction of the RPA reforms:
“The Government does not intend to introduce a minimum or maximum payment at this time. However, an enabling power will be provided for in legislation to be published later this month, that will allow a restored Executive to introduce either of these measures should it so wish.”
Mr Hanson said that the Government is proposing to introduce standardisation of rates liability in the social rented sector and also reform landlord liability to pay rates:
“Targeted consultation is currently being undertaken on standardisation in the social rented sector and landlord liability. Standardisation of rates liability in the social rented sector would reflect the market failure that exists in this sector and the limited mobility of these tenants. Rates liability would be a percentage of the rent charged on the property.
“Landlord liability should be revised to take account of the move to a new capital value system. In addition, we intend to make landlords liable for rates on houses in multiple occupation. This will reflect the fact that the tenancies in these properties tend to be transitory and the rates would be best collected by the landlord.”
In relation to vacant rating the Minister announced that:
“Following the introduction of the local government reforms I intend to provide district councils with the power to introduce the rating of vacant domestic properties should they so wish.”
Notes to Editors:
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